April 2019 State Tax Collections [EconTax Blog]

May 21, 2019 - This made up for the shortfall earlier this year. Previously , we had written about how the federal tax law changes likely were responsible for the December and January shortfall. (This appears to have been correct and PIT revenues are now on track for the fiscal year to date.)
https://lao.ca.gov/LAOEconTax/Article/Detail/375

Amid Good Fiscal Times, Planning for the Future Is Crucial

May 21, 2019 - New Ongoing Spending in the May Revision Is Nearing the Sustainable Limit To assess whether the state has capacity for new ongoing spending commitments, we estimate the difference between revenues and expenditures in the budget year and for several years ahead.
https://lao.ca.gov/Publications/Report/4051

Unemployment Claims Update: April 2019 [EconTax Blog]

May 17, 2019 - April claims were down 14,000 from a month ago and 12,000 from a year ago. Overall, unemployment claims continue to signal a strong labor market and offer little evidence of an impending economic slowdown.
https://lao.ca.gov/LAOEconTax/Article/Detail/373

The 2019-20 Budget: May Revision Multiyear Budget Outlook

May 17, 2019 - Lower Growth in General Fund Spending on Schools and Community Colleges. Under the rules of Proposition  98 (1988), the state must provide a minimum funding level to schools and community colleges each year.
https://lao.ca.gov/Publications/Report/4050

Home Sales Update: April 2019 [EconTax Blog]

May 16, 2019 - However, after several months of growing severity in year-over-year declines, the rate of decline seems to have stabilized at 10% to 12% in recent months. This level of decline is below the level typically seen before a recession (declines of 25 percent or more).
https://lao.ca.gov/LAOEconTax/Article/Detail/372

The 2019-20 May Revision: Analysis of the Governor’s January and May Mental Health Workforce Proposals

May 16, 2019 - The May Revision proposes allocating $100  million in state MHSA revenues to fund the 2020 ‑25 WET Five-Year Plan. The 2020 ‑25 WET Plan was released by OSHPD in February 2019, but until the May Revision did not come with any attached funding.
https://lao.ca.gov/Publications/Report/4049

Governor’s May Revision Update: Health Insurance Affordability Proposals

May 15, 2019 - The proposed state subsidies would limit these households ’ net premiums to a fixed percentage of income that would grow from about 10  percent for households with income just over 400  percent of the FPL to 25  percent for households with income at 600  percent of the FPL.
https://lao.ca.gov/Publications/Report/4047

The 2019-20 May Revision: Analysis of the May Revision Education Proposals

May 15, 2019 - The May Revision also increases the state share of project costs to 75 percent, reducing the local share from 50 percent to 25 percent for new construction projects and from 40 percent to 25 percent for renovation projects.
https://lao.ca.gov/Publications/Report/4048

The 2019-20 May Revision: Governor's May Revision Medi-Cal Budget

May 14, 2019 - Significant Changes to the Governor ’s Proposition  56 Multiyear Spending Plan The May Revision proposes a variety of changes related to the use of Proposition  56 funding in Medi-Cal over the next several years.
https://lao.ca.gov/Publications/Report/4046

The 2019-20 May Revision: Overview of the May Revision Proposition 98 Package

May 13, 2019 - In most years, the state budget allocates some ongoing Proposition  98 funds for one-time activities. This approach provides a buffer that reduces the likelihood of cuts to ongoing programs if the guarantee experiences a year ‑over ‑year decline.
https://lao.ca.gov/Publications/Report/4044